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CONSTRUCTION of Beerwah's newest residential development - a $20 million master-planned community at 95 Peachester Rd - is set to start on Friday.

Located at the old timber mill site as you head out of town toward Beerwah State School, the new medium-density housing estate will be known as Millbrook.

It will include 48 free-standing, single level houses within walking distance to the train station and shops.

It's touted as the largest residential development of its kind to be developed in Beerwah under the current Sunshine Coast Town Plan, and follows a trend toward higher-density development in the area since the 1980s when the economic focus on farming and timber production receded.

The area has also seen increased visitation and focus on tourism as the nearby Australia Zoo became internationally recognised.

Millbrook developer Douglas Forbes, of Seventeen Seventy Beach Pty Ltd, said Millbrook was his family-owned development firm's first foray on the Sunshine Coast.

It also owns beach holiday units at Agnes Water and waterfront units at Gladstone.

"We picked on Beerwah as a bit of a growth corridor," Mr Forbes said.

Reader poll

Would you buy a medium-density block at Beerwah's new development?

This poll ended on 24 October 2016.

Yes. It seems like it would be affordable. - 30%

No. I'd want more space in that kind of setting. - 66%

Not sure. - 2%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

He said the land was zoned for medium-density use, but rather than build townhouses or apartments, he had decided on detached, low-set houses that didn't compromise the view to the surrounding mountains.

"We've designed it to give the illusion of space - if you look straight ahead from a block, you'll always look into green space," Mr Forbes said.

Originally from Gladstone, the Forbes family moved to Brisbane where he grew up.

Mr Forbes now lives in Melbourne while his parents are on the Sunshine Coast.

The houses start at $385,000, and would likely be popular among people looking to downsize and with young families, he said.

"It's either downsizers, people coming off surrounding properties or people entering the market," he said.

"It's a community that likes a bit of space, but locals are also telling me a lot of people have had the lifestyle properties but they do become hard to maintain.

"A lot of people want to stay there but don't want to maintain it.

"They want to be close to everyone they know in town but without the maintenance."

Each free-standing house will have at least three bedrooms, two bathrooms and a double garage, to be built by Ausmar Homes.

A communal pool, barbecue facilities and landscaped gardens are also planned for the development.

"Each house will be different but they will enjoy a consistent build quality, high ceilings and resort-style fixtures and finishes," Mr Frobes said.